One of India’s top cement producers, Shree Cement, has recently been making waves on the stock market thanks to its bright future. Given that Shree Cement has been making tremendous progress in growing its operations and acquiring new assets, investors have been keenly monitoring the company’s share price goal.
Shree Cement Ltd. reported a 15% year-over-year (YoY) decline in net profit for the March quarter at Rs 546 crore compared to Rs 645 crore in the same quarter previous year on May 22. Sales for the quarter increased 17% YoY to Rs 4,785 crore from Rs 4,099 crore in the same quarter the previous year.
When compared to the same quarter last year, the total selling volume grew 10% sequentially to 8.83 million tonnes in the March quarter from 8.03 million tonnes. The percentage of premium product sales to total trade cement sales was 7.5% in the March quarter compared to 7.2 in the December quarter.
Shree Cement stated that it has been aggressively working towards exceeding its capacity goal of 80 million tonnes. The business plans to complete the commissioning of the 3.50 mtpa Nawalgarh project by the end of Q3FY24, while the commissioning of the Purulia grinding unit, with a capacity of 3 mpta, is slated to take place by the end of Q1FY24. According to Shree Cement, work on a project in the Andhra Pradeshi district of Guntur, which is slated to be completed early in the following fiscal year, is also going rapidly.
Shree Cement’s stock price has increased as a result of the recent announcement that it was chosen as the highest bidder for the Datima Coal Mine Block, which has further spurred investor optimism. Investors are now asking: Is Shree Cement a good stock to buy in light of all these developments?
We’ll examine Shree Cement’s share price objective and growth prospects from 2023 to 2030 in more detail in this post.
Latest news about Shree Cement
➤ The FY23 final dividend was not recommended by the board of directors. A second interim dividend of Rs. 55 per share for FY23 was announced by the cement manufacturer. The board had announced an interim dividend of Rs 45 per share earlier in the year. In comparison to a total payout of Rs 90 per share in the year, the total dividend for the year came to Rs 100 per share.
➤ “Shree Cement has delivered a robust set of revenue & Ebitda growth while strongly pursuing our journey to remain the greenest cement company with world class performance indicators,” stated the company’s managing director Neeraj Akhoury. In order to achieve outstanding performance, we are pursuing projects that are targeted to expand the use of green energy, alternative fuels, process automation, and advanced digitalization of the operations.
You can buy Shree Cement shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| May 2023 | ₹2530 | ₹24520 |
| June 2023 | ₹26900 | ₹26500 |
| July 2023 | ₹26,265.59 | ₹20,204.30 |
| August 2023 | ₹28,892.15 | ₹22,224.73 |
| September 2023 | ₹30,336.76 | ₹23,335.97 |
| October 2023 | ₹28,892.15 | ₹22,224.73 |
| November 2023 | ₹31,781.37 | ₹24,447.20 |
| December 2023 | ₹35,595.13 | ₹27,380.87 |
We can see that Shree Cement’s share price is predicted to experience fluctuations throughout 2023. The maximum price for the stock is expected to be around ₹35,595.13 in December 2023, while the minimum price is predicted to be around ₹20,204.30 in July 2023.
These fluctuations indicate that Shree Cement’s share price may experience a bullish uptrend, but investors should also be prepared for a potential dip in the stock price. The growth percentage for Shree Cement’s share price in 2023 is difficult to predict, as it depends on various factors such as the company’s financial performance and market conditions.
Although the company is in low debt and has had a good growth in terms of net profit QoQ and brokers have also upgraded their price targets for the company, we should not forget the declining net profit and margin YoY and declining cash flow. With a decline by more than 35% , the company’s current Earning per share is 388.62, whereas price-to-book and price-to-earnings ratio stand at 5.16 and 64.4 respectively.
However, with the recent acquisition of the Datima Coal Mine Block, Shree Cement may be in a strong position for growth in the coming years. Overall, investors should monitor Shree Cement’s stock closely and assess their own risk tolerance before making any investment decisions.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹37,468.56 | ₹28,821.97 |
| April 2024 | ₹40,286.60 | ₹30,989.70 |
| May 2024 | ₹33,572.17 | ₹25,824.75 |
| June 2024 | ₹40,286.60 | ₹30,989.70 |
| July 2024 | ₹34,243.61 | ₹26,545.44 |
| August 2024 | ₹37,667.98 | ₹29,895.22 |
| September 2024 | ₹39,551.37 | ₹30,424.13 |
| October 2024 | ₹46,531.03 | ₹35,793.10 |
| November 2024 | ₹48,857.58 | ₹37,582.75 |
| December 2024 | ₹49,834.73 | ₹38,334.41 |
Shree Cement’s share price has been predicted to rise steadily throughout 2024, according to the data provided. The maximum share price target for January 2024 is ₹37,468.56, with a minimum target of ₹28,821.97. Similarly, the maximum target for December 2024 is ₹49,834.73, and the minimum is ₹38,334.41.
The average target for 2024 is ₹41,624.08, which implies an upside of 26.86% from the current share price of the company. Based on these figures, analysts have given a strong buy recommendation for Shree Cement’s stock.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹50,831.43 | ₹39,101.10 |
| February 2025 | ₹53,506.76 | ₹41,159.05 |
| March 2025 | ₹56,182.10 | ₹43,217.00 |
| April 2025 | ₹50,162.59 | ₹38,586.61 |
| May 2025 | ₹45,602.36 | ₹35,078.74 |
| June 2025 | ₹50,162.59 | ₹38,586.61 |
| July 2025 | ₹47,773.90 | ₹36,749.15 |
| August 2025 | ₹49,764.48 | ₹38,280.37 |
| September 2025 | ₹52,252.70 | ₹40,194.38 |
| October 2025 | ₹55,387.86 | ₹42,606.05 |
| November 2025 | ₹59,265.01 | ₹45,588.47 |
| December 2025 | ₹60,450.31 | ₹46,500.24 |
Analyzing the price targets, Shree Cement’s share price target for 2025 appears to be positive overall, with an upward trend in the first half of the year and a relatively stable trend in the second half.
The maximum share price target is predicted to be around ₹60,450.31 in December 2025, while the minimum share price target is expected to be around ₹35,078.74 in May 2025. This suggests a potential return for investors who choose to invest in Shree Cement, but it’s important to note that there may be fluctuations in the market that could affect the share price.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹42,315.22 | ₹29,620.65 |
| 2027 | ₹35,967.94 | ₹25,177.55 |
| 2028 | ₹64,742.28 | ₹45,319.60 |
| 2029 | ₹132,990.69 | ₹93,093.48 |
| 2030 | ₹148,103.26 | ₹103,672.29 |
According to the data provided, Shree Cement’s share price target for 2026 to 2030 shows a mixed picture. The maximum and minimum price targets for 2026 are ₹42,315.22 and ₹29,620.65, respectively.
For 2027, the maximum and minimum price targets are ₹35,967.94 and ₹25,177.55. However, there is a significant jump in the maximum price target for 2028, which is ₹64,742.28, while the minimum price target is ₹45,319.60.
The share price target for 2029 and 2030 looks bullish as the maximum price target for 2029 is ₹132,990.69, and for 2030, it is ₹148,103.26, while the minimum price targets are ₹93,093.48 and ₹103,672.29, respectively. Investors can expect a substantial return on their investment if the average target prices are met.
However, it is important to note that the share price targets are subject to market volatility and are not a guarantee of future performance. Therefore, investors must consider the risk factors and consult with a financial advisor before making any investment decisions.
Financial Condition of Shree Cement: Last 5 years
| Narration | Mar-18 | Mar-19 | Mar-20 | Mar-21 | Mar-22 |
| Sales | 9,833.10 | 12,554.65 | 12,868.39 | 13,559.77 | 15,009.56 |
| Expenses | 7,360.35 | 9,757.97 | 9,097.79 | 9,468.32 | 11,299.63 |
| Operating Profit | 2,472.75 | 2,796.68 | 3,770.60 | 4,091.45 | 3,709.93 |
| Other Income | 389.05 | 68.63 | 262.90 | 426.26 | 543.89 |
| Depreciation | 899.40 | 1,471.81 | 1,807.81 | 1,262.34 | 1,145.88 |
| Interest | 135.27 | 247.86 | 291.43 | 251.29 | 216.12 |
| Profit before tax | 1,827.13 | 1,145.64 | 1,934.26 | 3,004.08 | 2,891.82 |
| Tax | 442.98 | 130.59 | 390.20 | 714.49 | 555.21 |
| Net profit | 1,384.15 | 1,006.30 | 1,535.85 | 2,285.87 | 2,331.94 |
| EPS | 397.74 | 289.17 | 425.44 | 633.20 | 645.97 |
| Price to earning | 40.72 | 64.56 | 41.24 | 46.53 | 37.20 |
| Price | 16,196.45 | 18,667.65 | 17,546.35 | 29,465.40 | 24,032.60 |
| RATIOS: | |||||
| Dividend Payout | 12.59% | 20.77% | 25.84% | 9.47% | 13.92% |
| OPM | 25.15% | 22.28% | 29.30% | 30.17% | 24.72% |
The financial data of Shree Cement shows a steady growth in sales, with an increase from ₹9,833.10 crore in March 2018 to ₹15,009.56 crore in March 2022. The company’s operating profit also witnessed growth from ₹2,472.75 crore in March 2018 to ₹3,709.93 crore in March 2022. However, the profit before tax fluctuated over the years, with a sharp rise in March 2021 and a slight dip in March 2022.
The company’s net profit also showed a consistent increase over the years, reaching ₹2,331.94 crore in March 2022.
Looking ahead, Shree Cement’s share price target for the period of 2026 to 2030 is difficult to predict as it is subject to various economic and market factors. However, with the company’s consistent growth in sales, operating profit, and net profit over the years, it is likely that the company’s share price will continue to perform well.
The average target for the stock is expected to rise steadily, with a potential upside in the coming years. Therefore, it could be recommended for investors to consider Shree Cement as a potential long-term investment option.
ICICI Direct has advised investors to maintain a “hold” rating on Shree Cements, with a target price of Rs 28,500.
FAQS
It is anticipated that Shree Cement per share price will increase to ₹35,595 by the end of 2023.
The share price target of Shree Cement for 2025 might be around ₹60,450.
What is the risk-free rate associated with Shree Cement?
The risk-free rate is revised on a daily basis, and the present rate stands at 7.28000000%.
The per share price of Shree Cement might reach around ₹1,48,103 by the end of 2030.
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Conclusion
In summary, Shree Cement has shown significant development in earnings, sales, and profits over the previous five years. Its PAT has also been rising gradually, pointing to a sound financial situation. Shree Cement’s shares could continue to rise in value over the next few years given the company’s expansion plans and a favourable outlook for the construction sector.
A potential gain of over 30% from the present share price of 25092 is also indicated by analysts’ average target prices for the company’s shares, which are approximately 36,000. (as of May 2023).
Shree Cement may therefore be a sensible investment for long-term investors seeking exposure to the cement sector. However, before making any selections, as with any investment, it’s crucial to do your research and take your risk tolerance into account.
What did we learn?
